REPORT TITLE:
Unfair and Deceptive Practices


DESCRIPTION:
Prohibits the offering of a prize in which the winner is
determined by a drawing or some other method of chance without
providing written representation that the prize may not be
awarded.  Authorizes an injured consumer to sue for damages and
attorneys' fees.  

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        
THE SENATE                              S.B. NO.           236
TWENTIETH LEGISLATURE, 1999                                
STATE OF HAWAII                                            
                                                             
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                   A  BILL  FOR  AN  ACT

RELATING TO UNFAIR AND DECEPTIVE PRACTICES. 


BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 1      SECTION 1.  Chapter 481B-1.6, Hawaii Revised Statutes, is
 
 2 amended to read as follows:
 
 3      "[[]§481B-1.6[]]  Offers of gifts or prizes; unlawful.(a)
 
 4 It shall be an unlawful practice under this chapter for any
 
 5 person to enforce or attempt to enforce an agreement to purchase,
 
 6 lease, or rent a consumer product if the offer to sell, lease, or
 
 7 rent was conducted in a manner not in compliance with the
 
 8 requirements of this chapter.
 
 9      (b)  It shall be an unlawful practice under this chapter for
 
10 any person to offer a gift, prize, or award by means of written
 
11 notice sent through the mail or by telephone with the intent to
 
12 sell, lease, or rent a consumer product, or to initiate the sale,
 
13 lease, or rental of a consumer product when, at the time of the
 
14 offer, the consumer product and all the material terms of the
 
15 sale, lease, or rental transaction, including the price,
 
16 handling, shipping, delivery, or any other fee, are not clearly
 
17 and conspicuously disclosed.
 
18      (c)  It shall be an unlawful practice for any person to
 
19 offer a gift, prize, or award by means of written notice sent
 

 
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                                     S.B. NO.           236
                                                        
                                                        

 
 1 through the mail or by telephone with the intent to receive a
 
 2 payment of any money when, at the time of the offer, all of the
 
 3 material terms of the transaction, including handling, shipping,
 
 4 delivery, or any other fee, are not clearly and conspicuously
 
 5 disclosed and the consumer is requested to:
 
 6      (1)  Further the transaction by calling a 900 number or "pay
 
 7           per call"; or
 
 8      (2)  Send payment of any money to receive or redeem the
 
 9           prize.
 
10      (d)  Any offer of a prize made by means of written notice
 
11 sent through the mail or by telephone shall include:
 
12      (1)  Information on the odds of being able to receive the
 
13           prize or if the odds are not calculable in advance, the
 
14           factors used in calculating the odds;
 
15      (2)  A statement that no purchase or payment is required to
 
16           win a prize or to participate in a prize promotion; and
 
17      (3)  Instructions on how to participate without purchase or
 
18           payment including an address or toll-free telephone
 
19           number to which a consumer may write or call for
 
20           information on how to participate. 
 
21      (e)  It shall be an unlawful practice for any person, firm,
 
22 partnership, association, or corporation, or agent or employee
 
23 thereof, to offer a prize or award in which the winning chances
 

 
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                                     S.B. NO.           236
                                                        
                                                        

 
 1 are to be determined by a drawing or some other method based on
 
 2 an element of chance, without providing written representation at
 
 3 the time the offer is made that the prize or award may not be
 
 4 awarded.  Any consumer who is injured by a practice declared
 
 5 unlawful in this subsection may sue for damages sustained by the
 
 6 consumer and, if the judgment is for the plaintiff, shall be
 
 7 awarded the return of any money paid to participate in the
 
 8 drawing or other activity referred to in this subsection and a
 
 9 sum of not less than $1,000 or threefold damages sustained by the
 
10 plaintiff, whichever sum is greater, and reasonable attorneys'
 
11 fees together with the costs of suit."
 
12      SECTION 2.  New statutory material is underscored.
 
13      SECTION 3.  This Act shall take effect upon its approval.
 
14 
 
15                           INTRODUCED BY:  _______________________